Lecture Project management: The managerial process (5/e): Chapter 4 - Erik W. Larson, Clifford F. Gray

Chapter 4 - Defining the project. This chapter describes a disciplined, structured method for selectively collecting information to use through all phases of the project life cycle, to meet the needs of all stakeholders (e.g., customer, project manager), and to measure performance against the strategic plan of the organization.

Defining

the Project

CHAPTER FOUR

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4–2 Where We Are Now

Where We Are Now

Defining the Project

Defining the Project

Step 1: Defining the Project Scope

Step 2: Establishing Project Priorities

Step 3: Creating the Work Breakdown Structure Step 4: Integrating the WBS with the Organization Step 5: Coding the WBS for the Information

System

Step 1: Defining the Project Scope

Step 1: Defining the Project Scope

• Project Scope

–A definition of the end result or mission of the project

—a product or service for the client/customer—in

specific, tangible, and measurable terms

• Purpose of the Scope Statement

–To clearly define the deliverable(s) for the end user –To focus the project on successful completion

of its goals

–To be used by the project owner and participants

as a planning tool and for measuring project success

Project Scope Checklist

Project Scope Checklist

1 Project objective

2 Deliverables

3 Milestones

4 Technical requirements

5 Limits and exclusions

6 Reviews with customer

Project Scope: Terms and Definitions

Project Scope: Terms and Definitions

• Scope Statements

–Also called statements of work (SOW)

• Project Charter

–Can contain an expanded version of scope statement –A document authorizing the project manager to initiate and lead the project

• Scope Creep

–The tendency for the project scope to expand over

time due to changing requirements, specifications, and priorities

Step 2: Establishing Project Priorities

Step 2: Establishing Project Priorities

• Causes of Project Trade-offs

–Shifts in the relative importance of criterions related

to cost, time, and performance parameters

• Budget–Cost

• Schedule–Time

• Performance–Scope

• Managing the Priorities of Project Trade-offs

–Constrain: a parameter is a fixed requirement

–Enhance: optimizing a criterion over others

–Accept: reducing (or not meeting) a criterion

requirement

Step 3: Creating the Work

Breakdown Structure

Step 3: Creating the Work

Breakdown Structure

• Work Breakdown Structure (WBS)

–An hierarchical outline (map) that identifies the

products and work elements involved in a project

–Defines the relationship of the final deliverable

(the project) to its subdeliverables, and in turn,

their relationships to work packages

–Best suited for design and build projects that have tangible outcomes rather than process-oriented projects

How WBS Helps the Project Manager

How WBS Helps the Project Manager

• WBS

–Facilitates evaluation of cost, time, and technical

performance of the organization on a project

–Provides management with information appropriate

to each organizational level

–Helps in the development of the organization

breakdown structure (OBS) which assigns project responsibilities to organizational units and individuals –Helps manage plan, schedule, and budget

–Defines communication channels and assists

in coordinating the various project elements

Work Packages

Work Packages

• A work package is the lowest level of the WBS.

– It is output-oriented in that it:

1 Defines work (what).

2 Identifies time to complete a work package (how long).

3 Identifies a time­phased budget to complete 

a work package (cost).

4 Identifies resources needed to complete 

a work package (how much).

5 Identifies a person responsible for units of work (who).

6 Identifies monitoring points (milestones) 

for measuring success.

Step 4: Integrating the WBS

with the Organization

Step 4: Integrating the WBS

with the Organization

• Organizational Breakdown Structure (OBS)

–Depicts how the firm is organized to discharge its work responsibility for a project

organization work unit performance

for work packages

to cost control accounts

Step 5: Coding the WBS for

the Information System

Step 5: Coding the WBS for

the Information System

• WBS Coding System

–Defines:

–Allows reports to be consolidated at

any level in the organization structure

Project Communication Plan

Project Communication Plan

• What information needs to be collected

and when?

• Who will receive the information?

• What methods will be used to gather

and store information?

• What are the limits, if any, on who has

access to certain kinds of information?

• When will the information be communicated?

• How will it be communicated?

Information Needs

Information Needs

• Project status reports

• Deliverable issues

• Changes in scope

• Team status meetings

• Gating decisions

• Accepted request changes

• Action items

• Milestone reports

Key Terms

Key Terms

Cost account

Milestone

Organization breakdown structure (OBS) Scope creep

Priority matrix

Responsibility matrix

Scope statement

Process breakdown structure (PBS)

Work breakdown structure (WBS)

Work package